Is Entertainment Tax Deductible? To disallow or allow that is the question!
First published on 27 September 2024 by Alastair
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Entertainment is one of the few areas of tax which has very specific legislation and to summarise in short entertainment and gifts, even when incurred solely for the trade are not allowable. As with most things however there are exemptions:
- Gifts to Charities
- Gifts to or entertainment for employees, unless the gifts are left over from those given to others, i.e. customers (not suppliers).
- A gift which includes an advertisement that is clearly for your company, (e.g. with the company name and logo). To qualify for this, the gifts cannot be a voucher, food, drink or tobacco and must not exceed £50 per person per year.
- General items produced by the company directly given away to the public as a general advertisement. Examples would be a pet store giving away food bowls or even tennis balls with the business name or logo on them.
- Entertainment is provided as part of the usual trade and free of charge to entice the public. An example of this is live music played inside a restaurant.
As always, if you are in any doubt or if you have any questions about expenses that are allowable or disallowable, please get in touch with us.
